Victory?? AIG In Talks For Complete Government Exit (AIG)

Embattled insurance giant AIG AIG is in talks for a complete exit from government ownership CEO Robert Benmosche told employees in a memo according to Bloomberg. In a memo obtained by Bloomberg, Benmosche said to employees, “We have commenced discussions with the U.S. government on the process and terms of a complete government exit. Depending of course on market conditions, which could remain volatile, we expect to make meaningful progress in 2010 on repaying the Federal Reserve Bank of New York, and over time fully repaying all of our obligations to taxpayers.” To help offset the cost of the massive $182.3 billion bailout of the insurance giant, AIG is selling off its stakes in Alico to Metlife MET for $15.5 billion and is doing an IPO for AIA Group Ltd. (AIA). AIG also owes the Treasury Department almost $50 billion. In order to pay down this debt, the Treasury is mulling a plan to convert preferred shares into common stock and sell the holdings over a span of two years.